Saturday, September 29, 2007


So the strike is over, I've no idea what the details of the new agreement are, but it got me thinking.

Sure, GM is now spending over $5B (yup, Billion) each year on health care for it's workers (current and retired). Yes, that's a lot of cash.

Still, they were the most profitable company in the U.S. off and on for the past 45 years!!!! Hell, they made $1.4 BILLION in 1963 (after making just under a billion the previous 3 years).

And it's not as though they haven't planned for their employees' retirement, they've got $90B in their pension fund. But, it sounds as though they do not have a health care fund, but just have a liability. (To "fund" the UAW health care fund, they're considering handing over $30B).

What happens to poor folks (or even average folks) who are delinquent on their auto/house/boat payments? We get our stuff repossessed. Well, GM should have been paying better attention to their financial state and saved for the retirement costs like they did their pension.

I have no sympathy for GM. They promised to pay the bills, they've made a TON of money over the years, there's no excuse for not living up to their obligations.

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